What is tools of trade insurance?

The tools of trade insurance is a type of commercial insurance that covers the cost of replacing or repairing tools that are used in your business.

Tools can be any kind of equipment that you use to perform your job, including more traditional items like hammers and screwdrivers, but they also include newer inventions like computers and smartphones. This type of insurance is available to both small businesses and large corporations alike.

The Guide To Tools Of Trade Insurance

What does tools of trade insurance cover?

Tools of trade insurance gives you the peace of mind that if something happens to your tools, you won’t be left out of pocket. It covers a range of items, but some policies are more comprehensive than others. Here’s a quick guide to what you can expect:

  • Tools – Tools can include everything from drills and power tools to chainsaws and lawnmowers.
  • Mobile equipment – Mobile equipment is another common form of tools of trade insurance. This could include anything from forklifts to earthmoving equipment or cranes.
  • Electronic equipment – Electronic equipment refers to any device that uses electricity, from desktop computers to mobile phones, tablets, and laptops. Many policies also cover tablets and laptops that are used for work purposes as well as for personal use (as long as they’re not stolen).

What doesn’t tools of trade insurance cover?

Tools of trade insurance does not cover loss or damage to tools that are not used for work. If you own a tool and choose not to use it for work, you will not be able to make a claim if the tool is stolen, damaged or lost.

Tools of trade insurance also does not cover loss or damage to tools that are not owned by the policyholder. If your friend lends you their power drill and it is stolen from your house, this would be classed as theft rather than an ‘insurable event’ and therefore would not be covered under tools of trade insurance.

The advantages of tools of trade insurance

If you are like many business owners, your tools are an investment. You have spent a lot of time, energy and money purchasing the tools that help make you successful in your trade. Tools of Trade Insurance provides coverage for these valuable items to help protect them from damage or loss due to theft or fire. It’s not just about protecting the hardware but also all those little extras (like tool belts) that go along with it!

Tools of trade Insurance can be customized to meet your needs – whether it is for one item or a collection of equipment, this type of policy can be used to provide protection for any type of equipment at home or work locations as well as when traveling on jobsite. The low cost over traditional insurance policies makes this protection affordable even if you don’t have much coverage otherwise.

Man with clipboard taking inventory of tools.

How to choose the right cover and what to be aware of when choosing

When choosing tools of trade insurance, it’s important to think about your budget and how much you can afford to pay. Make sure you understand what is covered under your policy, and how much could be claimed back if something happened. You should also check whether you are covered for the job you are doing and the type of work that you do.

Get covered for your tools so you can always get the job done.

Tools of trade insurance is a great way to protect your business from financial loss due to theft, damage, or destruction of your tools. It’s important that you choose the right cover and understand what you are covered for. We hope that this guide has helped you better understand what tools of trade insurance covers and how it works so that you can make an informed decision when choosing cover for yourself or your business.

Contact us for more information on getting the right tools of the trade insurance policy for you.